With the craze for irreplaceable coins earlier this year, many climate-conscious artists expressed their dissatisfaction with Ethereum’s power consumption. Elon Musk derailed Bitcoin (BTC) in May, citing the energy used by Bitcoin as the reason why Tesla abandoned its plans to accept BTC as payment for its electric vehicles.
These two incidents have sparked a wave of controversy both inside and outside the blockchain community. In particular, arguments tend to focus on two areas: Bitcoin’s energy consumption and dependence on climate-damaging fossil fuels versus renewable energy, and secondly, the benefits of a blockchain platform over another – a general emphasis on consensus models and the presentation of evidence. stocks as a greener alternative.
Each discussion is filled with arguments from both sides. If the IPCC is right, the need for decisive action to reverse some of the damage can not be overestimated. For this, attention should be paid to the positive uses of blockchain.
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Leverage the power of blockchain
An important way in which the impact of blockchains is already significant is its ability to harvest large amounts of energy that would otherwise be wasted, which is then combined and re-ignited for wider use. Wasted energy crowdsourcing follows the principles of a circular economy that eliminates a distribution culture to get the most out of available resources. And computing power is an example.
Whether it’s a personal laptop or a commercial server outside of business hours, devices use a huge amount of idle processing power, especially when not in use. At the same time, there is a huge demand for computing power, which is being met by companies such as Amazon Web Services, which is constantly building new data centers to meet this need.
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Blockchain networks such as the decentralized cloud computing platform Cudos redirect and better utilize the extra computing power of inactive computers, reducing waste in the process. Other networks such as Filecoin or Bluzelle focus on storage services, but the principle is the same.
Decentralization of the power grid
Other projects use this concept to decentralize electrical networks. Brooklyn Microgrid is a very local initiative that allows “consumers” (producers and consumers) of solar energy to sell the profits, and turns it into a microgrid where other members can buy it. This is a kind of “act locally, think globally” project that proves that anything is possible if you are ready to start from scratch.
In Vienna, the government has previously funded an initiative that allows citizens to earn rewards for identifying sources of thermal waste that can be recycled into the grid. A slightly different version of the same decentralized theme, but using the same principles of using blockchain technology for the common good.
Reliable environmental information
Blockchain technology also plays an important role in ensuring transparency and accountability to governments and companies for their role in the fight against climate change. ESG transparency is now high on the CFO’s agenda following the adoption of the EU regulation on sustainable financing earlier this year. In a broad sense, regulation obliges banks and financial institutions to rank their investment products according to their environmental qualifications.
Using blockchain to store and verify this information will increase the visibility and investor confidence in products that have ESG credentials. It has become easier to envision a future where consumers and organizations will be able to make choices based on the algorithmic ESG rating of any type of organization on the blockchain.
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It is not enough to be the “least bad” blockchain platform, and society is far from helpless when it comes to air conditioning. It has powerful technology at its disposal, as well as some of the best, brightest and most innovative leaders in the world.
It is clear that blockchain technology can be used in many positive use cases that give green causes more than they take away. That said, blockchain technology is a more compelling argument in favor of its environmental applications than against it.